E112 (LOD (peprec- Conceptual Understonding) Rembrandt Company acautred a Plant asset at the besinning of Year I, The asset has an estimated Service 1ife of E Years, An emplotee has Prepared deprec. Schedyles for this asset using three different methods to Compare the results of ysing one method with the results of using other methods. You are to assume that the following Schedules have been Correctly Prepared for this asset using (I) the straighttine method, (2) the Sum-of-the - Years-digits me thod, and (3) the doyble-declining- balance methodi Sym-of the-Years Pigits Double- Dectining- Balance Year Straight-Lire $ 9000 $15000 13000 7200 4,320 I2,000 y000 yo00 9000 4 bo00 5. Total Instructions AD 4? a Answer the following 00 K0gma) thinidmog questions q What is the Cost of the asset being depreciated? bi What amounty if anys was used in the deerec Calculations for the salvage Value for this assef? Which method Will produce the hiohest Charge to inome in Year 1? Which method will Produce the highest Charge to income in Year 42 de Which method Will Produce the hightst book vallue , for the asset at the end of year 3? If the asset is sold at the end of Year 33 Which methad woyld Yield the hiehest gain Cor lowest loss) on diseosal of the asset?
E112 (LOD (peprec- Conceptual Understonding) Rembrandt Company acautred a Plant asset at the besinning of Year I, The asset has an estimated Service 1ife of E Years, An emplotee has Prepared deprec. Schedyles for this asset using three different methods to Compare the results of ysing one method with the results of using other methods. You are to assume that the following Schedules have been Correctly Prepared for this asset using (I) the straighttine method, (2) the Sum-of-the - Years-digits me thod, and (3) the doyble-declining- balance methodi Sym-of the-Years Pigits Double- Dectining- Balance Year Straight-Lire $ 9000 $15000 13000 7200 4,320 I2,000 y000 yo00 9000 4 bo00 5. Total Instructions AD 4? a Answer the following 00 K0gma) thinidmog questions q What is the Cost of the asset being depreciated? bi What amounty if anys was used in the deerec Calculations for the salvage Value for this assef? Which method Will produce the hiohest Charge to inome in Year 1? Which method will Produce the highest Charge to income in Year 42 de Which method Will Produce the hightst book vallue , for the asset at the end of year 3? If the asset is sold at the end of Year 33 Which methad woyld Yield the hiehest gain Cor lowest loss) on diseosal of the asset?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:E112 (LOD (peprec- Conceptual Understonding)
Rembrandt Company acautred a Plant asset
at the besinning of Year I, The asset has an estimated
Service 1ife of E Years, An emplotee has Prepared deprec.
Schedyles for this asset using three different methods
to Compare the results of ysing one method with the
results of using other methods.
You are to assume that the following
Schedules have been Correctly Prepared for this asset using
(I) the straighttine method, (2) the Sum-of-the
- Years-digits me thod, and (3) the doyble-declining-
balance methodi
Sym-of
the-Years
Pigits
Double-
Dectining-
Balance
Year
Straight-Lire
$ 9000
$15000
13000
7200
4,320
I2,000
y000
yo00
9000
4
bo00
5.
Total
Transcribed Image Text:Instructions AD 4? a
Answer the following 00 K0gma) thinidmog
questions
q What is the Cost of the asset being depreciated?
bi What amounty if anys was used in the deerec Calculations
for the salvage Value for this assef?
Which method Will produce the hiohest Charge to inome
in Year 1?
Which method will Produce the highest Charge to
income in Year 42
de
Which method Will Produce the hightst book vallue
, for the asset at the end of year 3?
If the asset is sold at the end of Year 33
Which methad woyld Yield the hiehest gain Cor lowest
loss) on diseosal of the asset?
Expert Solution
Step 1
Since there are 3 methods in which depreciation amount is same and we know that depreciation under straight line methods remains same because cost of asset id depreciated over the useful life of the asset.
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